Three projects are underway investigating how a tourist tax, including a levy on holiday let renters, could apply in Wales.

The three probes – triggered by the Welsh Government, which is run by a partnership between Labour and the Welsh nationalist party Plaid Cymru – are to look at the economic impacts of such a tax, how other countries tax tourists, and the demographics of housing provision in Wales.

These are likely to report back to the Welsh Government in late summer, with a consultation on possible measures later in the year.

Rebecca Evans, Wales’ minister for finance and local government, says: “Visitor levies are a common feature in tourist destinations internationally. They are an opportunity for visitors to make an investment in local infrastructure and services, which in turn make tourism a success. Without such a levy, local communities face an undue burden to fund local services and provisions on which tourists rely.”

Wales’ First Minister, Mark Drakeford, has already said that he believes a tourism tax – which could be applied to those renting a traditional holiday let or a short let property – can help ease the burden on local ratepayers who underwrite many services and facilities that visitors enjoy.

Anti-second home and anti-Airbnb sentiment continues to build in Wales.

A recent report to the local authority in Denbighshire, for example, showed that growing numbers of homes are now holiday properties.  

A council spokesperson says: “Looking at these properties that are being used in summer, of course, and empty during the winter – and we are losing revenue as well from this – it concerns me that we have got so many people homeless in Denbighshire that we can’t use these properties. A lot of young people are not able to get on the housing ladder due to this, and we are losing a lot. They are moving away.”

He continues: “This issue is very important for many areas in Wales on many levels, the economy, the effect on everything, the Welsh language and also in rural areas.”

Under new rules announced last week, there will be three new classes of property in the Welsh planning system: a primary home, second home and short-term holiday accommodation.

Councils will then be able to make amendments to the planning system to require planning permission for change of use from one class to another.

There are also powers to be given to councils to apply for higher Land Transaction Tax (the Welsh version of stamp duty) on second homes and short lets.

It has already been agreed that Welsh councils can charge up to a 300 per cent premium on council tax on homes that aren’t occupied all year round